Forbes interview with KoreConX founders

Do you know how to invest in the private capital market?  Not many people do.  It is complicated, requires a lot of paperwork, has low transaction volume, comes with risk and volatility, and not very liquid.

Could distributed ledger technology (DLT) be used to reduce back-office fees and expand the market for this asset class?

I interviewed Oscar Jofre, CEO and co-founder of KoreConX, who believes his platform and infrastructure can help.

KoreConX is a company working to change how businesses raise capital.  Mr. Jofre is an advocate for using DLT to bring transparency to a fractured process.  Mr. Jofre mentioned, “There are over 90,000 companies in our platform from around the globe who have raised more than $6.6 billion. Companies who use the KoreConX platform raised capital working with broker-dealers or direct offerings on their own. We are purely providing the technology to make sure they are fully compliant and to manage the entire process.”

What is the private capital market?  What are the problems?

The private capital market represents companies not publicly traded on stock exchanges. Private funds, venture capital investors, and some mutual funds are typically the main buyers.  Investments can be in new start-up enterprises, mature business, or sometimes struggling firms. This type of asset is considered to be highly risky.

One critical problem, the team at KoreConX explained, was the lack of market access for small firms. Dr. Kiran Garimella, KoreConX’s CSO and CTO, said, “The majority of participants in private capital markets are smaller entities who are closely connected with local companies and investors. They cannot afford huge expenses for integrated systems.”  KoreConX specializes in connecting all sizes of firms rather than limiting their scope to more mature enterprises.  Interestingly CEO Oscar Jofre’s background is crowdfunding, which is a driving influence in his business.

Jason Futko, CFO and co-founder, said, “It is often difficult for companies in the private capital markets to identify investors to present their opportunity. The fragmentation in this market can make it difficult to find investors or other professionals to help you grow your business.”

On June 26th, 2019, Broadridge bought from Northern Trust a similar blockchain platform.  There is competition in this space from many players. Mr. Jofre said, “There are companies like Carta, Capshares, ComputerShare, AST, and Link Group that offer some of the features KoreConX provides in our all-in-one platform. We have a much different view of the market. To truly transform it, we need to make sure all participants have all the tools they need. If they don’t, then we will never see any great change in the private capital markets.”

KoreConX launched on October 11th, 2019, their new blockchain ecosystem for fully compliant digital securities worldwide.  Their mission is to ensure compliance with securities regulation and corporate law.  The KoreConX platform includes securitized token issuance, trading, clearing, settlement, management, reporting, and corporate actions.

As explained to me by the management team, the lack of data integrity and regional knowledge of jurisdictional compliance can restrict investment opportunities offered to the public.  Mr. Futko continued, “Obviously part of the solution under KoreConX has to be around connecting document fragmentation, providing access to professionals and creating trust through our blockchain, which ensures both business and regulatory logic.”

Why can blockchain technology help now?

The KoreConX team stated that the private capital markets serve over 450 million private companies worldwide today.  They have a lack of document transparency and high fees. Compare this to public capital markets, which have established listing standards and rules.  Furthermore, open markets are used every day and can handle many transactions.  Dr. Garimella said, “Blockchain offers technology that provides solid mechanisms for trust through immutability and consensus among parties.”

I asked Mr. Jofre to explain why his work was different from larger companies, like Broadridge? He responded, “KoreConX is entering a market with many providers who have a single feature or application. For private capital markets to be as efficient, as public listed markets, it needs an infrastructure layer and an application layer.  KoreConX brings both.  We do not exclude anyone because of size or geography.”

The SEC proposes expanding the “accredited investor” definition

The SEC has proposed amending the definition of “accredited investors.” Accredited investors are currently defined as (huge generalization here) people who have net worth of $1 million (excluding principal residence) or income of $200,000 ($300,000 with spouse) or entities that have assets of $5 million. Here’s the full definition.

The whole point of the accreditation definition was that it was it was supposed to be a way to determine whether someone was able to “fend for themself” in making investment decisions, such that they didn’t need the protection that SEC registration provides. Those people may invest in private placements. The thinking at the time the definition was adopted was that a financial standard served as a proxy for determining whether an investor could hire a professional adviser. Financial standards have never been a particularly good proxy for investment sophistication, though, and some people who are clearly sophisticated but not rich yet have been excluded from being able to invest in the private markets.

The proposal would:

  • Extend the definition of accredited investor to natural persons (humans) who hold certain certifications or licenses, such as the FINRA Series 7 or 65 or who are “knowledgeable employees” of hedge funds;
  • Extend the definition of accredited investors to entities that are registered investment advisers, rural business investment companies, LLCs (who honestly we all assumed were already included), family offices, and other entities meeting an investments-owned test;
  • Do some “housekeeping” to allow “spousal equivalents” to be treated as spouses and tweak some other definitions; and
  • Create a process whereby other people or entities could be added to the definition by means of a clear process without additional rulemaking.

We are generally in favor of these proposals. However, we worry that the more attractive the SEC makes the private markets, the more that people of modest means will be excluded from the wealth engine that is the American economy. We also believe that the concerns raised about the integrity of the private markets by the two dissenting Commissioners, here and here, should be taken seriously. The real solution to all of this is to make the SEC registration process more attractive, and better-scaled to early-stage companies.

In the meantime, read the proposals and the comments, and make up your own minds. The comment period ends 60 days after publication in the Federal Register, which hasn’t happened yet.

Why is my cap table so important for my company?

It’s never too early in the process of building a company to start managing your capitalization table (otherwise known as a cap table). As a detailed document recording all information regarding shareholders and the equity owned in the company, a well-managed cap table will become essential to long term success. Even if you’re thinking that your company does not need to keep such detailed records early on, understanding its importance may change your mind. 

At first, keeping track of equity might be a simple task. In the early stages, perhaps equity had only been distributed amongst cofounders. However, as the company grows, equity might be given out to key team members and employees, which all needs to be recorded accurately.  Without numbers correctly recorded, it will likely be hard to know exactly how much equity is remaining for the future. Also, with proper recording, it will allow founders to easily determine how certain deals may affect the equity distribution of the company. 

For potential investors, the cap table will be a key resource. Before investing in a company, investors will want to become familiar with current shareholders and the equity that each one possesses. The transparency a well-managed cap table allows will help avoid delays and increase investor confidence. During rounds of funding, the founder should also be concerned with how awarding investors with equity will affect their ownership in their company. For both parties during investor negotiations, the cap table will be essential. 

Once the company has received investments from investors, managing shareholders will also become an important task, which can be done in the cap table. The cap table will typically include investor information, such as who they are, their voting rights, and the number of shares that they own. With this information in one centralized place, if voting was to take place, the cap table ensures that all investors would be included as necessary.

One major benefit of starting to manage a cap table as soon as possible is that it will save time and resources in the long run. As the company begins to seek funding, the cap table would be already prepared and up to date. If the company did not already begin to keep records in their cap table, they would need to go back and create one, which could increase the chances for errors since it could be possible for them to have lost documents or records that they would need.

So what is the best way to manage your company’s cap table? Even though you can make a simple spreadsheet in Excel, using software such as KoreConX’s all-in-one platform might be more beneficial for long-term success. As deals occur, the cap table is automatically updated, eliminating errors that could result from manual changes. The platform also provides investors with the transparency they need to feel confident in their investments. Companies will benefit immensely from the increased transaction speeds and expedited due diligence that results from a properly managed cap table.

SEC changes to RegA+ and RegCF

On 04 March 2020, the US Securities Exchange Commission (SEC) has laid out the proposed changes that are going to have a major impact on the private capital markets.  This is very positive for the market. These changes have been in the works for a number of years and many in the industry have advocated for these changes that are now materializing.

The Commission proposed revisions to the current offering and investment limits for certain exemptions. 

Regulation Crowdfunding (RegCF): 

  • raise the offering limit in Regulation Crowdfunding from $1.07 million to $5 million;

This is going to benefit the 44+ online RegCF platforms such as;  Republic, Wefunder, StartEngine, Flashfunders, EquityFund, NextSeed.   These online platforms have paved the way and now more US-based companies will be able to capitalize on this expanded RegCF limit.  

Regulation A (RegA+) 

  • raise the maximum offering amount under Tier 2 of Regulation A from $50 million to $75 million; and
  • raise the maximum offering amount for secondary sales under Tier 2 of Regulation A from $15 million to $22.5 million.

As you saw in our recent announcement of our RegA+ all-in-one investment platform, we expect more companies to now start using RegA+ for their offerings and they need a partner that can deliver an end-to-end solution.   www.koreconx.io/RegA

These two changes are momentous and will have far-reaching consequences in democratizing capital and make it very efficient for companies to raise capital. This also increases the shareholder base, which makes it even more important for companies to have a cost-effective end-to-end solution that can manage the complete lifecycle of their securities.

If you want to learn more please visit:

www.KoreConX.io/RegA

Here is the complete news release by the SEC

https://www.sec.gov/news/press-release/2020-55?utm_source=CCA+Master+List&utm_campaign=40105b558a-EMAIL_CAMPAIGN_2020_01_02_09_01_COPY_01&utm_medium=email&utm_term=0_b3d336fbcf-40105b558a-357209445

Global Crypto Twins one on one with Oscar Jofre co-founder of KoreConX

The Crypto Twins are well-recognized faces in the blockchain space and have been advocates and the voice for those who are supporting the global ecosystem of digital securities formation.

This was a great interview by the Crypto Twins to gain insight from a global leading authority on where the market is moving towards.  What is the private capital markets, this is one interview if you are looking for insight you want to make sure you watch.

Midas Letter James West interviews CEO of KoreConX

The Midas Letter show is hosted by personality James West, who gets right into things with his guests. He is an advocate of the capital markets. This interview was a great insight for James and his viewers to learn about the great opportunity in the private capital markets that is emerging.

Many Rights Make the KoreProtocol Right

Over the last few weeks, we have seen the highly entertaining farce of Craig Wright claiming to be Satoshi Nakamoto by registering a copyright to the original bitcoin whitepaper and code. He may very well be Satoshi. However, registering a copyright does not confer an official recognition of identity. Wei Lu, CEO of Coinsumer, proved it. Reacting to the press releases and social media statements made by Craig Wright and his supporters, the US Copyright office took the extraordinary step of publicly refuting the claim that a copyright registration is the same as official & proven recognition. This prompted the subject line of Coindesk’s May 23rd Blockchain Bites email: “Wright is wrong.”

The public blockchains provide an endless source of fun. Whatever their faults, one can’t blame them for being boring. The responsible, permissioned chains are, in contrast, boring. KoreChain in particular is relatively dull to thrill-seeking outsiders, while extremely exciting to those who truly understand private capital markets and how the KoreProtocol is spearheading innovation for private issuers and investors.

The KoreProtocol defines many types of shareholder rights in private digital securities. These rights, some mandatory and some discretionary, are well-established in securities law and corporate law. The innovation and complexity of shareholders rights is only limited by the willingness and imagination of the participants. In the absence of automation and a single source of immutable truth, the implementation of rights can become a bureaucratic nightmare. This, more than anything, becomes a limiting factor for innovative contracts. By defining shareholder rights rigorously in the KoreProtocol and implementing the full workflows in KoreChain for their exercise, the KoreProtocol and the KoreChain take away the pain and effort of managing these rights. This opens up private capital markets to very flexible and complex shareholder agreements to suit the needs of the participants.

The KoreProtocol and the implementation within KoreChain include rights such as (to give a few of the more prominent examples):

  1. Voting/non-voting
  2. Financial participation in the form of dividends or revenue
  3. Distribution of revenue or dividends as cash, reinvested securities, or other forms of payment
  4. First right of refusal
  5. Tag-along rights
  6. Drag-along rights
  7. Pre-emptive rights

Each of these rights and their numerous variations have implications and consequences in secondary market trading and in corporate actions. The KoreProtocol provides a structured way to define these rights and their impact on securities transactions. The KoreProtocol implements complete end-to-end management of financial transaction processes, some of which may be very long-running.

The definition of protocol functions to handle all the complex scenarios in securities transactions is not a trivial undertaking. However, it is much easier than the actual implementation of the protocol since that requires handling long-running processes and making tradeoffs between manual and automated processes, data sharing mechanisms, and choice of endorsers. Every step of the process must be fully compliant with securities laws, corporate laws, and the provisions of the underlying contracts.

Trying to shoehorn securities transactions into inadequately defined protocols and delegating the implementations to someone else is to do the worldwide financial community a huge disservice. Implementing the rights of issuers and investors is a very complicated undertaking. For example, ERC-1404, in the words of its creators, “…solves for the compliance challenges that are part of the issuance process and beyond.”

How does ERC-1404 solve the problem of whether senders can send tokens to a receiver and whether receivers can receive tokens from a sender? By defining two functions: CanSend() and CanReceive(). The github code itself shows one function:

detectTransferRestriction(fromAddress, toAddress, numTokens) //I made it a bit readable.

With no trace of irony, the authors of this protocol point out that: “The specific logic covering who can send and receive can be configured outside the token contract itself.”

It is easy enough to write protocols as long as we leave the messy details of implementation to someone else!

In reality, the transfer of digital securities in a fully-compliant way is quite complicated. It is not just a matter of “who can send and receive”, but also a question of the circumstances under which securities can be transferred or not. There are complex workflows and numerous checks that need to be followed before any transfers, whether P2P, beneficial, or trade-related, can occur. The checks relate to the jurisdictions and exemptions under which the securities are issued, domicile of the participants, securities laws that govern all subsequent inter- and intra-jurisdictional securities transactions, corporate laws, the rights spelled out in the shareholders’ agreements, and the presence or absence of various types of events such as corporate actions, regulatory actions, and economic events.

To be fair, the creators of simplistic protocols may very well be aware of these complexities; however, the fact remains that they come nowhere near expressing the richness and complexity of global private capital markets. Also, they offer no guidelines for implementation or even a hint of the treacherous complexities.

At KoreConX and in KoreChain, knowing the business as we do by being an SEC-registered transfer agent, we chose to not only develop a comprehensive protocol but also implement it in all its complexity. Tapping into our worldwide partner network of securities lawyers, secondary market operators, broker-dealers, academics, and other thought-leaders, we tackled the problem by creating a legal base that incorporates much of the complexity of securities law and corporate law worldwide. This includes inter-jurisdictional transactions, Blue Sky laws in the US, Canadian provincial laws, etc.

Private capital markets provide enormous flexibility for creating complex shareholders’ agreements. We have so far not seen two offerings or agreements that are similar. The public markets are relatively standardized, which can be a strength in terms of offering liquidity at the expense of flexibility of contracts. Private companies and their investors want more control and flexibility.

By incorporating the various types of rights (some mandatory, some optional, and some that are negotiated) into the KoreProtocol and implementing through the KoreChain, our mission is to create the right infrastructure to preserve and foster innovation in global private capital markets while also furthering the cause of efficient liquidity.

www.koreconx.com

www.KoreConX.io

Exempt Market Update 2019

The exempt market in Canada is going through some major developments that will fundamentally change how the private market will be seen by investors.

Digital Securities provide companies, who are raising capital, the opportunity to offer their investors another potential exit that until now was only seen as a pipe dream.

It’s no longer a dream, it’s in fact reality. Digital Securities are a direct representation of the securities a company offers to investors, but instead of a piece of paper, it’s put on a technology that is immutable. 

Companies around the world are raising capital offering investors Digital Securities, which would allow them to have secondary market trading.

ATS (Alternative Trading Systems) have been around for decades around the globe, in most cases unused due to inefficiencies and high costs.

With over 16 ATS now launching in the USA and more coming in Europe and ASIA we will see more ATS secondary markets for private shares than public stock exchanges in the next 24. The reason is very simple. There is more private companies than public listed.

450 Million private companies vs 85,000 public listed companies worldwide.

$2.4 trillion raised by U.S private companies vs. $2.1 trillion by public companies, a gap that has been widening for 6 years. With the decline in the number of public companies and the rise of private financing will drive a need for efficient secondary market trading of private shares. A blockchain enabled and global compliant digital security is critical to the success of secondary markets for private shares.

On 29 May 2019, OMEGA has filed an application with the regulators to launch a Digital Securities ATS. This announcement shows you how the market is evolving to provide further liquidity in the private capital markets. This will not be the first ATS in Canada. 

KoreConX is leading the market by providing the tools for Exempt Market Dealers to put their business online, in a secure and compliant manner, to be connected in the private capital markets ecosystem.

The KoreConX all-in-one platform, powered by IBM’s Hyperledger Fabric, is the key infrastructure that, until now, was missing from the private capital markets. Our globally compliant digital securities protocol is the key to creating efficient securities management throughout their lifecycle. 

KoreConX Revolutionizing Private Capital Markets

www.koreconx.com

www.KoreConX.io

KoreConX launches $15M Digital Securities Offering using its own Fully-Compliant KoreProtocol

KoreConX is excited to announce its Digital Securities Offering that will utilize its own KoreProtocol. The KoreProtocol is the world’s first complete end-to-end protocol that has built-in AI to manage the entire lifecycle for tokenized securities, from issuance, trading, and all types of corporate actions.

The global securities marketplace is changing, and the future is tokenization. Combining corporate and securities law with tokenization facilitates efficient liquidity and fully-compliant transactions in multiple jurisdictions.

“We are thrilled about developing and launching our Digital Securities Offering on our KoreChain. KoreConX’s AI-enabled blockchain, based on Hyperledger Fabric and hosted at IBM, provides the highest level of security. The KoreProtocol handles the complete lifecycle of the security token, from issuance, secondary trading, and all types of corporate actions,” said Dr. Kiran Garimella, KoreConX’s Chief Scientist and CTO.

KoreConX will be working with established broker-dealers worldwide to make this initial offering of $15 million USD available to accredited investors in multiple jurisdictions (countries).

KoreConX believes in complying with securities regulation and corporate law to protect investors, issuers, and other participants in the global capital markets.

“KoreConX has been a fully operational all-in-one platform for several years helping many clients worldwide with compliance activities. The opportunities are tremendous for using tokenized securities to create efficiencies, reduce costs, and provide stronger governance for private companies. Our unrelenting focus is on ensuring the safety, security, and investor protection in global private capital markets,” said Oscar Jofre, co-founder, CEO of KoreConX.

For more information visit www.koreconx.io

Meet the KorePartners: Luka Gubo, Blocktrade

 

This post is part of a series of short interviews about the companies and faces that are part of the KorePartners Ecosystem*.

We believe that behind every great company there are people, and behind every person, there is a story to tell.

KorePartner: Luka Gubo, CEO at Blocktrade

Born in: Celje, Slovenia
Based in: Ljubljana, Slovenia and Schaan, Liechtenstein

What was your first job?
 High Frequency Trader at a proprietary trading firm.

How and when did you get involved in the Blockchain industry?
I started reading about Bitcoin in 2015 and mostly dismissed it as an alternative for fiat currencies. In 2016 I read about other Blockchain protocols and immediately saw the potential for disrupting the capital markets – both on the primary market (issuance of securities) and also the secondary market (for post-trade processes).

How do you see the Blockchain scene today?
There was a lot of regulatory uncertainty in past years and I think this will change in 2019. Crypto assets have their place in broader financial markets as a unique asset class where more and more institutional investors will seek uncorrelated returns. On the technology side, I think we will see a lot more use cases where several counterparties are involved – we are focused only on the capital markets, while we see a lot of disruption in banking, payments, transportation and other industries.

What does your company bring to the KorePartners Ecosystem?
Blocktrade is a secondary market for crypto assets with a focus to bring institutional clients to this new market. With the MTF license (pending regulatory approval) we will be able to list security tokens issued on KoreConX and bring necessary liquidity.

What is it about the partnership with KoreConX that most aligns with your company strategy?
KoreConX provides a full suite of services that companies that are issuing (or just tokenizing) their shares on blockchain must have in place when admitting securities to trading on a regulated trading venue. Covering the full lifecycle of these securities (from issuance, reporting, trading, etc.) we can together create a seamless experience for companies and investors. I believe that Blocktrade and KoreConX can together disrupt how the capital markets operate.


*The KorePartners Ecosystem is a group of organizations that follows our governance standards and share with us the same goal: to provide entrepreneurs with the tools they need to grow their business.

Difference between Crypto and Security Token

Is there a difference between cryptocurrency and a security token?

The answer is yes, there is a big difference. And it is time we get these right so the thick fog around this topic can begin to clear up. It is very important to understand how each of them is very different from each other.

You probably read or hear these two words every day and in most cases in the wrong context. Before we get into the difference lets make one thing clear.

Crypto or Cryptocurrency is an alternate (i.e., non-fiat) CURRENCY
Security Token is an EQUITY POSITION IN A COMPANY

All over the web, there are many discussions, blogs, articles, and tweets on using blockchain. Of course, many of them follow to the extraordinary words “Crypto”, or “Cryptocurrency” and “Security Token”.

I am amazed by the number of people who use these two words interchangeably, yet they are so different as stated above. Let’s have a look at each one in more detail.

What is Crytpo or Cryptocurrency?
Wikipedia has a clear definition: “A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.”

Crypto or Cryptocurrency is just a currency. Other examples of currency are Dollars, Euros, Pesos, etc. These currencies are traded worldwide by currency traders. Nowadays we have the introduction of digital currencies such as Bitcoin, Ethereum, Litecoin, etc. Wikipedia has put together a list of these digital currencies.

Currencies are regulated by a securities commission or foreign exchange agencies. The rules around who can purchase currency and trade them are very simple. In most cases, it is required to be 18 years or older. ID Verification, AML (Anti Money Laundering), and some basic KYC (Know Your Customer) will be done. Not more than this is required to purchase a currency.

For trading, the platforms will need to be registered with commissions and/or regulators in their country to legally operate the exchange. This financial regulator is regulating the currency, transfer, and trading business.

What is Security Token?
In 2017 we saw the emergence of companies issuing tokens to raise capital. In countries such as USA and Canada, regulators have been very clear on this form of capital raising.

When a company offers a token from their company for an investor to invest in, the goal is for the token to trade and gain in value. Security agencies, including the SEC in the USA and the CSA in Canada, have made it clear that when companies are conducting a token offering in which the token has the ability to trade and gain in value, it must be issued as a security token.

Security Token is a tokenized security that is issued by a company. The security represents an equity position in the company. In order to issue the security, the company must comply with regulations as to how it can market the offering, who it can attract to invest in their company, reporting requirements, trading restrictions, and custodianship (Transfer Agent) requirements.

For a company to issue a security token it must:

  • Determine what jurisdiction (countries) it wants to attract investors from
  • Determine what exemption to use to offer their security token to investors (accredited or non-accredited investors)
  • Determine trading restrictions per jurisdiction and exemption
  • Determine reporting requirements per jurisdiction and exemption
  • Determine Transfer Agent requirements per jurisdiction and exemption
  • Determine if Broker Dealer is required per jurisdiction
  • Determine what regulated ATS Secondary Market is available for trading

As you can see it’s clear how different these two are from each other and there should be no confusion going forward.

Here is how the two can come together and be used in the proper context. You can use cryptocurrency to invest in a security token offering by a company. But that can only happen as long as the company has agreed to accept this form of digital currency, the investor meets regulatory requirements, the company can offer their securities in the country (Jurisdiction) of residence of the investor, and if the company is using a broker-dealer, the dealer is also prepared to accept that form of payment.

Capital Raising “Capital markets point of view” dealer

For private issuers, raising capital is the next natural step once you have exhausted other traditional forms of financing. It becomes even more enticing when you read about other firms doing it, and thinking why shouldn’t that be us.

However, being prepared to take the issuer to the next level can be a source of frustration if you’re not ready for it. Nobody is willing to just hand out money; you have to make a convincing case based on fact and incomplete due diligence documentation can leave you out in the cold.

Issuers must prepare comprehensive information which covers who the guiding minds behind the issuer are, who the current shareholders are, business continuity planning, company financials, what is it that makes you unique and a comparison with competitors in the same industry.

Dealers are bombarded by people who claim to have the next best thing, but if you can’t boil it down to facts and figures, they won’t spend much time looking at you. Using up to date technology to gather all the corporate information is critical to your success. Using a platform to house your cap table management, minute book, financials, investor relations and corporate data in electronic format means you can walk into a meeting prepared for whatever they throw at you.

For dealers, having a platform whereby issuers can login and input all the relevant information that you need from them, allows you to control the process and weed out the unprepared ones before you devote a lot of time to analysing potential deals. A controlled mechanism whereby issuers know what information they need to provide and where to put it, saves everyone significant time and effort.

Taking it one step further, for registered dealers to have the ability to easily showcase their approved products online, along with pertinent information about the issuer – corporate biographies, financial information, information about the proposed raise –  helps dealers to bring their proposed offerings to potential investors. From a compliance perspective, it means having all of your due diligence in one place, for when the regulators come to visit.

Taking it two steps further, for investors to b able to view potential offerings, input their Know Your Client (KYC) information to determine their eligibility, answer questions to determine the suitability of the investment, have the platform conduct the necessary AML checks and then provide an efficient method for payment, once approved by the CCO, and you have an efficient and cost effective ecosystem which helps issuers, dealers and investors communicate.

KoreConX has an all-in-one platform to accomplish this and ensures that all parties are acting in compliance with securities regulations. Issuers can effectively connect with dealers who in turn can connect with investors all while ensuring that they have the necessary KYP/KYC processes and documentation in place, should they get audited.